For a beginning investor (less than 5 grand), what is a sound and safe way to invest money that will net a large long term return on investment with minimal risk? I can't seem to find anything that I can invest in that doesn't scream ponzi scheme, relies to heavily on the fickle stock market, or has interest rates barely higher than inflation.

How much background do you have regarding investing? I am not an investor (besides retirement) although I am working on developing some sound knowledge to become one. I suggest if you want to avoid risk, similar to me, then do whatever is necessary to educate yourself on investing opportunities.

I have completed some simple tasks that the board has suggested, such as invest to the company match in a 401K and develop an emergency fund. I have yet to start a Roth IRA , that is next on my checklist.

I am tempted to dump the majority of the money I plan on using for investing opportunities into CDs. This will at least improve my interest rates on my money over what savings provides, while I tinker around (procrastinate) with what gives me the most confidence to start out in.

Rick, You sound like a man with a plan. Are you willing to spend 20+ hours a week on your investments? You probably already spend 10 hours a week on them. There are ways to reduce your taxes and fund your ROTH. There are no short cuts. There are ways to grow and compound your net worth. It takes alot of work if you want to retire early.....joe

Retiring early is a dream. Ultimately I want to have additional income to start growing funds for a variety of down-the-road expenses. Time is everything. If I had more time, or better yet, a clear mind, I would be well ahead of my goals

I'm asking because I'm still in college and have no capital to invest as of yet. I have a very sound money mind, but I lack field knowledge as to what is currently working under this high inflation, 0% FED interest rate clusterf&%k of a system. I'd like to start investing in my future as soon as I start my career in another year, but I want to already know where to start. I don't just want to have a small retirement fund that will tank with the next stock market crash. I want to start from nothing and build an empire one trade at a time...or at least settle for a long term investment that will give me more than plenty to retire on. I'm hoping being Jewish helps

Honestly, the stock market, even though its pretty volatile in the short-term, is the best bet for the long run. If you are still in college, then I wouldn't worry about losing all your capital especially if you go with large cap stocks. I don't have too much field knowledge to give you great advise though.

With your age, it will be good to experience the highs and lows of the stock market without exposing yourself to a huge amount of capital. When you say you want a large long term return with minimal risk, that is an impossibility to describe, as those terms mean different things to different people.

I would suggest first taking some type of investor profile. This will help you understand your actual risk tolerance. Everybody wants to minimize their market risk, however everybody has different levels that they see as acceptable.

Once you have figured that out, then you can start doing some actual research into what type of investment vehicles you may find suitable.

Curious though, what were you looking into that seemed like a ponzi scheme?

Assuming you are less than 30, I'd take a hard look at Vanguard Dividend Growth Mutual Fund - VDIGX, a 5-star with "low" risk and "high" return. I discount the 2008 crash and look at the returns for 2009, 10, 11 and 12.

Look at MSN money section to start research. You may want to also review WSJ or CNN or Yahoo Finance page or The Street to get a full perspective of this fund.